Risk of Rising Logistics Costs
First written in FY2018-Q2. 14 of 29 entries say "Mitigated", first in FY2020-Q2. Latest entry: 2026-10-14.
Delica Foods Holdings moved to the "Worse" side of this theme in 2018, 3 years before the typical company in this theme (2021).
The whole theme swung hardest in 2026: 18 of 26 companies on the "Worse" side.
7 other companies' latest entry also says "Materialised".
- FY2026MaterialisedAnnual report
「Although the segment worked to improve efficiency, including through various cost reductions, segment profit (ordinary profit) declined by ¥21 million, or 15.1%, year on year to ¥120 million, due mainly to the advance burden of rent and other costs related to the Tokai Mother Center, which began operations in April 2026.」
While pursuing efficiency measures in response to rising logistics and labor costs, among others, the upfront rent burden for the Tokai Mother Center was incurred, becoming a factor that reduced profit in the logistics business by 15.1%. - 2026-05-13WorsenedEarnings
「Segment profit (ordinary profit) declined by ¥21 million, or 15.1%, year on year to ¥120 million. Despite efforts to improve efficiency, including various cost reductions, profit was affected by front-loaded rent and other expenses related to the Tokai Mother Center, which began operations in April 2026.」
Although the logistics business continued to improve efficiency, profit declined because of front-loaded rent and other expenses related to the Tokai Mother Center. - FY2026-H1MitigatedAnnual report
「Segment profit (ordinary profit) was also ¥82 million, an increase of ¥17 million, or 26.8%, from the same period of the previous year.」
Against a backdrop of expanded sales outside the Group by the logistics subsidiary and efficiency improvements, profit in the logistics business increased 26.8% year on year, easing the earnings burden from higher logistics and labor costs. - FY2024MitigatedAnnual report
「Profit in this segment (ordinary profit) was ¥87 million, an increase of ¥49 million, or 130.2%, from the previous fiscal year, reflecting efforts to improve efficiency, including various cost reductions.」
The logistics business continued various cost reductions and efficiency measures, resulting in segment profit of ¥87 million, up 130.2% year on year. - FY2024-Q3MitigatedAnnual report
「Segment profit (ordinary profit) was ¥52 million, an increase of ¥21 million, or 71.9%, from the same period of the previous year, reflecting efforts to improve efficiency, including various cost reductions.」
In the logistics business, efficiency measures such as various cost reductions lifted segment profit to ¥52 million, up 71.9% year on year, further easing the earnings burden from higher logistics and labor costs, among others. - FY2024-Q2MitigatedAnnual report
「Segment profit (ordinary profit) was ¥23 million, an increase of ¥14 million, or 155.1%, from the same period of the previous year.」
Segment profit in the logistics business increased from ¥9 million in the same period of the previous year to ¥23 million, further easing the earnings burden amid rising logistics and labor costs, among others. - FY2024-Q1MitigatedAnnual report
「Segment profit (ordinary profit) was ¥26 million, an increase of ¥6 million, or 34.4%, from the same quarter of the previous year, partly reflecting efforts to improve operating efficiency, including route consolidation.」
Profit in the logistics business increased through efficient operations, including route consolidation, and measures to address the earnings burden from higher logistics and labor costs, among others, continued. - FY2023-Q3MitigatedAnnual report
「Segment revenue increased by ¥303 million, or 12.0%, year on year to ¥2,832 million, as revenue from the major shipper, デリカフーズ株式会社, remained steady and sales outside the group were strengthened. Segment profit (ordinary profit) increased by ¥13 million, or 76.7%, year on year to ¥30 million, reflecting efficiency improvements such as consolidating delivery routes.」
Against a backdrop of rising logistics costs, profit in the logistics business increased from ¥17 million in the same quarter of the previous year to ¥30 million, driven by efficiency measures such as expanding sales outside the Group and consolidating delivery routes. - FY2023-Q2MitigatedAnnual report
「Across the Group, while continuing to give top priority to preventing infections among employees, business partners and others, we pursued efficient operations through strict purchasing and inventory control, reductions in waste, and optimization of staffing and logistics.」
The Group implemented efficient operations, including optimization of staffing and logistics, and secured segment profit of ¥9 million in the logistics business through thorough cost reductions. Measures to address the earnings burden from higher logistics costs progressed. - FY2023-Q1MitigatedAnnual report
「Segment profit (ordinary profit) was ¥19 million, compared with segment loss (ordinary loss) of ¥0.7 million in the same quarter of the previous year, as the company pursued efficient operations such as consolidating routes, returning the business to profitability.」
Efficient operations such as consolidating routes enabled the logistics business to swing from a loss of ¥0.7 million in the previous year to profit of ¥19 million, easing the performance burden from logistics costs and other factors. - FY2022MitigatedAnnual report
「Segment profit (ordinary profit) was ¥14 million, compared with segment loss (ordinary loss) of ¥56 million in the previous year, as the company pursued greater efficiency through measures such as consolidating delivery routes.」
Efficiency measures such as consolidating delivery routes enabled the logistics business to swing from a loss of ¥56 million in the previous fiscal year to profit of ¥14 million, easing the performance burden from rising logistics costs and other factors. - FY2022-Q2MitigatedAnnual report
「Segment profit (ordinary profit) was ¥1 million, compared with segment loss (ordinary loss) of ¥67 million in the same quarter of the previous year, due to thorough cost-cutting efforts.」
Cost-cutting measures enabled the logistics business to swing from a loss of ¥67 million in the same quarter of the previous year to profit of ¥1 million, easing the performance burden from rising logistics costs and other factors. Revenue in the logistics business also increased 23.5% year on year due to the expansion of the delivery area into Kyushu and other factors. - FY2022-Q1MitigatedAnnual report
「Segment revenue increased by ¥200 million, or 33.5%, year on year to ¥797 million, as orders improved with the expansion of the delivery area to Kyushu, while revenue at the major shipper, デリカフーズ株式会社, remained steady. Despite thorough cost reductions, the segment loss (ordinary loss) was ¥0.7 million, compared with a segment loss (ordinary loss) of ¥57 million in the same quarter of the previous year, due in part to higher expressway tolls associated with the expanded delivery area.」
Orders improved as the delivery area expanded into Kyushu, narrowing the logistics business loss from ¥57 million in the previous year to ¥0.7 million. The logistics cost burden remains, but its impact on performance was lower than in the previous fiscal year. - FY2021WorsenedAnnual report
「Despite thorough cost-cutting efforts, including consolidating delivery routes and reducing outsourcing costs to offset the decline in revenue, the segment recorded a loss (ordinary loss) of ¥56 million, compared with segment profit (ordinary profit) of ¥8 million in the previous fiscal year.」
The logistics business recorded lower revenue due to a decline in orders from its principal shipper and deteriorated from profit of ¥8 million in the previous fiscal year to a loss of ¥56 million even after cost-cutting measures. - FY2021-Q3WorsenedAnnual report
「Revenue declined to ¥2,112 million, down ¥219 million, or 9.4%, year on year, due to a substantial decline in orders from デリカフーズ株式会社, its principal shipper. Despite thorough cost-cutting efforts, including consolidating delivery routes to offset the decline in revenue, segment loss (ordinary loss) was ¥66 million, compared with segment profit (ordinary profit) of ¥2 million in the same quarter of the previous year.」
A decline in orders from the principal shipper caused revenue in the logistics business to fall 9.4%; even after cost-cutting measures such as consolidating delivery routes, the business deteriorated from profit of ¥2 million in the previous year to a loss of ¥66 million. - FY2021-Q1WorsenedAnnual report
「Revenue declined to ¥597 million, down ¥154 million, or 20.5%, year on year, as orders fell substantially in line with the sales performance of デリカフーズ株式会社, its principal shipper. Despite thorough cost-cutting efforts to offset the decline in revenue, segment loss (ordinary loss) was ¥57 million, compared with segment loss (ordinary loss) of ¥5 million in the same quarter of the previous year.」
The decline in orders from デリカフーズ, the shipper, caused revenue in the logistics business to fall 20.5% and the segment loss to widen from ¥5 million in the previous year to ¥57 million. - FY2020MitigatedAnnual report
「Despite expenses to secure personnel and vehicles for business expansion and the development of the logistics network and higher fuel costs resulting from surging crude oil prices, segment profit (ordinary profit) was ¥8 million, compared with segment loss (ordinary loss) of ¥12 million in the previous fiscal year, due to the introduction of one weekly non-operating day from October with the cooperation of some customers and stronger cost-cutting efforts.」
Amid continued expenses to secure personnel and vehicles and higher fuel costs, the logistics business improved from a loss of ¥12 million in the previous fiscal year to profit of ¥8 million through one weekly non-operating day and cost-cutting efforts. - FY2020-Q3MitigatedAnnual report
「Despite expenses to secure personnel and vehicles for business expansion and the development of the logistics network and higher fuel costs resulting from surging crude oil prices, segment profit (ordinary profit) was ¥2 million, compared with segment loss (ordinary loss) of ¥5 million in the same quarter of the previous year, due to the introduction of one weekly non-operating day from October with the cooperation of some customers and stronger cost-cutting efforts.」
Although expenses to secure personnel and vehicles and higher fuel costs continued, the logistics business improved from a loss of ¥5 million in the previous year to profit of ¥2 million through one weekly non-operating day and cost-cutting efforts. - FY2020-Q2MitigatedAnnual report
「Segment loss (ordinary loss) was ¥2 million, compared with segment loss (ordinary loss) of ¥5 million in the same quarter of the previous year, due to expenses to secure personnel and vehicles for business expansion and the development of the logistics network, as well as higher fuel costs resulting from surging crude oil prices.」
Although expenses to secure personnel and vehicles and higher fuel costs continued, the logistics segment loss narrowed from ¥5 million in the same quarter of the previous year to ¥2 million. - FY2020-Q1WorsenedAnnual report
「Segment loss (ordinary loss) was ¥5 million, compared with segment profit (ordinary profit) of ¥0 million in the same quarter of the previous year, due to expenses to secure personnel and vehicles associated with business expansion and the development of the delivery network, as well as higher fuel costs resulting from surging crude oil prices.」
Expenses to secure personnel and vehicles and higher fuel costs caused the logistics business to swing from profit in the same quarter of the previous year to a loss of ¥5 million, and the impact of rising logistics costs on performance continued. - FY2019WorsenedAnnual report
「Segment loss (ordinary loss) was ¥12 million, compared with segment profit (ordinary profit) of ¥0 million in the previous fiscal year, due to expenses to secure personnel and vehicles for business expansion and the development of the logistics network, higher personnel costs resulting from driver shortages, and higher fuel costs resulting from surging crude oil prices.」
Expenses to secure personnel and vehicles, higher personnel costs due to driver shortages, and higher fuel costs caused the logistics business to swing from profit in the previous fiscal year to a loss of ¥12 million. - FY2019-Q3RestatedAnnual report
「Segment loss (ordinary loss) was ¥5 million, compared with segment profit (ordinary profit) of ¥3 million in the same quarter of the previous year, due to proactive efforts to secure personnel and vehicles for business expansion and the development of the logistics network, higher personnel costs resulting from driver shortages, and higher fuel costs resulting from surging crude oil prices.」
Expenses to secure personnel and vehicles, higher personnel costs due to driver shortages, and higher fuel costs continued to contribute to losses in the logistics business. - FY2019-Q2WorsenedAnnual report
「Segment loss (ordinary loss) was ¥5 million, compared with segment profit (ordinary profit) of ¥4 million in the same quarter of the previous year, due to proactive efforts to secure personnel and vehicles for business expansion and the development of the logistics network, as well as higher fuel costs resulting from surging crude oil prices.」
Expenses to secure personnel and vehicles and higher fuel costs caused the logistics business to swing from profit of ¥4 million in the previous year to a loss of ¥5 million, further worsening the impact of rising logistics costs on performance. - FY2019-Q1MaterialisedAnnual report
「Segment profit (ordinary profit) declined by ¥4 million, or 99.9%, year on year to ¥0 million, due to proactive efforts to secure personnel and vehicles for business expansion and the development of the logistics network, as well as higher fuel costs resulting from surging crude oil prices.」
The risk of rising logistics costs materialised as expenses to secure personnel and vehicles and higher fuel costs, causing profit in the logistics business to decline 99.9% year on year. - FY2018RestatedAnnual report
「Selling, general and administrative expenses increased by ¥513 million, or 6.9%, from ¥7,423 million in the previous consolidated fiscal year to ¥7,937 million. This was mainly due to higher personnel and recruitment costs resulting from labour shortages, as well as higher logistics costs associated with building the logistics network.」
Higher personnel and recruitment costs due to labour shortages and higher logistics costs associated with building the logistics network were identified as factors behind the increase in full-year SG&A expenses. - FY2018-Q3MaterialisedAnnual report
「Segment profit (ordinary profit) was ¥3 million, down ¥1 million, or 31.3%, from the same quarter of the previous year, due to higher labor costs associated with driver shortages and the incurrence of costs to establish a logistics network.」
Concerns over logistics costs materialised as higher labour costs due to driver shortages and expenses for building the logistics network, affecting the decline in profit in the logistics business. - FY2018-Q2First statedAnnual report
「The food-related industry continues to face difficult conditions. Consumers' concern about food safety and security and their inclination to economize have become entrenched, while personnel and recruitment costs are rising because of tight labor supply and demand, and logistics costs are also increasing.」
The company has newly identified rising logistics costs as one factor contributing to the challenging business environment in the food-related industry.